P2P Lending in Malaysia

Digital Finance is growing fast across the world, and Malaysia is no exception.  During the SCxSC Digital Finance Conference held in November 2017, Securities Commission Malaysia (SC) outlined the progress made in digital markets. The SC strategy aims to enhance access to financing, increase investor participation, augment the institutional market, and develop synergistic ecosystems.  According to SC, the equity crowdfunding (ECF) and Peer-to-Peer (P2P) financing platforms have funded 450 campaigns, raising a total of RM50 million to meet the financing needs of the Micro, Small and Medium Enterprises (MSMEs) (Read more here).

Source: https://i2.wp.com/blog.seedly.sg/wp-content/uploads/2017/10/Peer-to-peer-how-it-works-01.png?ssl=1

Currently there are six P2P operators approved by SC.  P2P financing is a web-based innovation that broadens the ability of entrepreneurs and small business owners to unlock capital from a pool of individual investors in small amounts and provides a quick turnaround time to obtain financing for their businesses, through an online digital platform.  The P2P framework is part of SC’s on-going effort to provide greater access to market-based financing through the application of innovative technology solutions (Read more here).

Below is the fact sheet for P2P lending by Funding Societies Malaysia, a SC’s approved P2P operator.

Source: Funding Societies Malaysia.  This table has been prepared by Modalku Ventures Sdn Bhd (“Funding Societies”) for information purpose only. It is not intended to be an offer for financing or invitation to subscribe or purchase of securities. Financing application and approval are subject to policies and guidelines (including due diligence and credit assessment) maintained by Funding Societies from time to time. Funding Societies reserves the right to change the information of this table without prior notice and to request for additional documentation or impose additional conditions for financing, if deems fit.